��Ƶ’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

��Ƶ and Abu Dhabi listed firms recorded net profit declines of 2.7 percent and 2.2 percent, respectively. Shutterstock

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Updated 29 August 2024

REEM WALID

August 29, 2024 15:48

��Ƶ’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

Main sectors of the stock exchange recorded strong year-over-year profit growth this quarter
Energy sector recorded the largest decline in net profit in the first six months of 2024

Updated 29 August 2024

REEM WALID

August 29, 2024 15:48

RIYADH: Listed companies in ��Ƶ saw a modest increase in net profit by 2.6 percent year on year, reaching $39.1 billion in the second quarter of 2024, according to a report.

The latest study from Kuwait-based asset management company KAMCO Invest showed that the key sectors contributing to this growth included banks, basic materials, and telecommunications, which experienced robust profit growth. Conversely, sectors such as energy, consumer services, media and entertainment, food retail, and basic commodities saw declines in their annual profits.

For the first half of 2024, ��Ƶ’s performance was somewhat less favorable, with net profit declining by 2.7 percent to $75.2 billion.

The energy sector faced the most significant downturn, with net profit falling 7.4 percent to $55.7 billion. The real estate sector also struggled, with a 22.8 percent drop in net profit to $249.3 million. However, gains in the banking, basic materials, and capital goods sectors partially offset these declines.

Overall, the Gulf Cooperation Council region’s companies showed minimal growth, with net profit inching up by 0.1 percent to $116.9 billion in the first half of 2023.

This slight increase masks more pronounced declines in ��Ƶ and Abu Dhabi, with their listed firms experiencing net profit reductions of 2.7 percent and 2.2 percent, respectively. These declines were counterbalanced by higher revenues in other GCC countries.

Saudi Aramco, a major player in the energy sector, reported a 2.5 percent decline in net profit for the second quarter of 2024, impacted by lower crude oil sales and weaker refining margins. However, this decrease was moderated by higher average crude oil prices and reduced production revenues compared to the same period in 2023.

In contrast, companies listed on the Abu Dhabi Securities Exchange experienced a 4.7 percent increase in net profit to $8.3 billion in the second quarter of 2024. Yet, for the first half of the year, their net profit declined by 2.2 percent to $16.2 billion.

Overall, the report underscores a complex financial landscape across the GCC, with sector-specific trends and varying regional performances influencing overall profitability.

��Ƶ’s construction output to hit $191bn in 2029: Knight Frank

Updated 16 sec ago

Nirmal Narayanan

July 07, 2025 13:44

��Ƶ’s construction output to hit $191bn in 2029: Knight Frank

Updated 16 sec ago

Nirmal Narayanan

July 07, 2025 13:44

RIYADH: ��Ƶ’s construction output value is expected to reach $191 billion in 2029, representing a rise of 29.05 percent compared to 2024, according to an analysis.

In its latest report, global consulting firm Knight Frank pointed to the growth in residential developments, the ongoing giga-projects, and increased demand for office space — particularly in Riyadh — as the key drivers for this rise.

The Kingdom aims to deliver over 1 million homes, more than 362,000 hotel keys, over 7.4 million sq. meters of retail coverage, and more than 7.7 million sq. meters of new office space by the end of this decade as part of its Vision 2030 economic diversification drive.

��Ƶ’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.

Knight Frank’s forcast comes after the output value for the construction, transport, and power sectors, as well as those covering oil and gas, industrial, water, and chemical, in the Kingdom expanded by 4.6 percent year on year in 2024, reaching $148 billion.

The anticipated growth in the Kingdom’s construction output value also aligns with the broader trend observed in the GCC region, where countries are pursuing their economic diversification efforts.

“Construction contracts totaling more than $215.4 billion were awarded across ��Ƶ between 2020 and 2025, highlighting the government’s incredible ambition and commitment to making the Kingdom the center of wealth generation and trade not just in the GCC (Gulf Cooperation Council) but globally,” said Faisal Durrani, partner, head of research of Knight Frank in the Middle East and North Africa.

He added: “Indeed, some $1.3 trillion is planned to be invested in real estate and infrastructure projects as part of Vision 2030, highlighting the breadth and scale of what is now being delivered.”

According to the report, the total real estate development value for the Western Region accounts for 53 percent of the total in this $1.3 trillion development plan.

In May, a report released by Research and Markets projected that the construction market in the UAE is expected to expand at a compound annual growth rate of 4.8 percent from 2025 to 2029, reaching 242.33 billion dirhams ($65.89 billion).

In June, Research and Markets projected that Qatar’s construction sector is projected to grow at an annual average growth rate of 4.7 percent from 2026 to 2029, supported by public and private sector investments in renewable energy, water infrastructure and liquefied natural gas projects.

In February, speaking at the Public Investment Fund Private Sector Forum in Riyadh, Fahad Al-Hashem, assistant deputy minister at the Ministry of Investment, said that ��Ƶ’s construction sector saw significant growth in 2024, with 3,800 new licenses added in just one year to bring the total to 8,900.

According to the latest Knight Frank report, Riyadh remains the center of construction activity, with $135.2 billion of contracts awarded since 2020, representing 63 percent of the total across the Kingdom.

The $195 billion development plan for Riyadh envisions 4.6 million sq. meters of office space, 2.6 million sq. meters of retail, more than 28,800 hotel rooms, and over 340,000 residential units.

Knight Frank added that the total value of commissioned projects in Riyadh stands at $35 billion.

The analysis also discussed Riyadh’s rapidly developing transport system, which includes the Riyadh Metro project, featuring six lines spanning 176 km with 85 stations and fully automated, driverless trains.

Knight Frank stated that the King Abdulaziz Public Transport Project in the capital will create a comprehensive bus rapid transport system, while more than $5 billion is being spent on major road projects to support the city’s expansion.

“With the population of Riyadh projected to increase to 10 million by 2030, the city’s transport upgrade program is one of the largest and most innovative in the world,” said Mohamed Nabil, regional partner, head of project and development services, Knight Frank, MENA.

He added: “Although the car is still the dominant form of transport, the investments being made in Riyadh’s Metro and rapid transport system show how the city is redefining the urban experience through sustainable development to create not only a liveable city, but also an attractive destination for business and tourism.”

In June, a separate report released by Knight Frank highlighted the growth of Riyadh as a commercial hub.

According to that analysis, the rents for Grade A office spaces in the Kingdom’s capital reached SR2,700 ($719.95) per sq. meter, marking a year-on-year rise of 23 percent, driven by the success of government-led initiatives, including the ambitious regional headquarters program.

That initiative offers benefits to international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as discounts and support services.

In the latest report, Amar Hussain, associate partner — research Middle East at Knight Frank, said that giga-projects in the Kingdom are emerging as a major hub for construction activities.

“The $50 billion New Murabba project will transform 19 sq. km of north-west Riyadh, creating 18 new neighborhoods. In Western ��Ƶ, a $685.5 billion real estate development plan centered on giga projects will deliver more than 382,000 homes, 330,000 hotel rooms, and office and retail space spanning upwards of 7.3 million sq. meters,” said Hussain.

He added: “These projects are designed on a scale far beyond anything else currently under construction in EMEA (Europe, the Middle East and Africa), and this bold vision is rapidly becoming reality, bringing benefits to Saudi residents and businesses alike.”

Topics: Knight Frank real estate construction

��Ƶ’s National Development Fund secures $1.3bn in credit facilities to boost development projects

Updated 13 min 14 sec ago

Miguel Hadchity

July 07, 2025 13:31

��Ƶ’s National Development Fund secures $1.3bn in credit facilities to boost development projects

Deals designed to enhance funding for key development projects across the Kingdom
Two agreements signed with Al-Rajhi Bank and Arab National Bank

Updated 13 min 14 sec ago

Miguel Hadchity

July 07, 2025 13:31

RIYADH: ��Ƶ’s National Development Fund has secured SR5 billion ($1.3 billion) in credit facilities through two agreements with Al-Rajhi Bank and Arab National Bank.

The deals are designed to enhance funding for key development projects across the Kingdom, empowering its 12 affiliated development funds and financial institutions to drive economic growth and accelerate national transformation, according to the Saudi Press Agency.

The agreements represent a strategic move in the NDF’s push to promote sustainable development and strengthen ��Ƶ’s private sector, reflecting the Kingdom’s increasing reliance on public-private partnerships to drive economic growth. This approach supports broader efforts to reduce government dependence and enhance private investment in key sectors, such as infrastructure, renewable energy, and technology.

The pacts were formalized during a signing ceremony at the fund’s headquarters in Riyadh. Khalid Shareef, vice governor of the NDF, said that the initiative aligns with the fund’s strategy to foster stronger partnerships between the government and private financial institutions.

“The goal is to provide credit products to the development system through the fund and its associated development banks,” Shareef said.

He added: “This will empower these institutions to effectively implement their strategic projects and expansion plans, thereby increasing their contribution to economic growth and supporting the objectives of Saudi Vision 2030.”

In a separate statement, Al-Rajhi Bank announced that the deal with NDF is valued at SR3 billion for a 12-month duration.

“The agreement aims to strengthen the support of development projects in the Kingdom and enable the development banks of the development system to achieve their development goals, contributing to enhancing economic growth and accelerating the pace of national transformation,” the statement said.

In a post on its official X account, the NDF said that the agreements are part of its “commitment to supporting development projects and empowering funds and banks within its ecosystem.”

Speaking to Arab News in February, Jaber Al-Salah, chairman of the academic chapter and member of the steering committee of the World Association of Public-Private Partnership Units and Professionals, explained how the deals align with the Vision 2030 drive to boost the private sector’s contribution to gross domestic product from 40 percent to 65 percent by the end of the decade.

“PPPs offer several benefits to the private party, making them an attractive option for collaboration. These partnerships also support government objectives by improving public asset efficiency, enhancing service coverage, quality, and rationalizing spending,” he said.

Topics: Saudi national development fund ��Ƶ

Oman inflation holds at 0.81% as food, housing costs remain stable

Updated 44 min 28 sec ago

Miguel Hadchity

July 07, 2025 12:42

Oman inflation holds at 0.81% as food, housing costs remain stable

Updated 44 min 28 sec ago

Miguel Hadchity

July 07, 2025 12:42

RIYADH: Oman’s inflation rose 0.81 percent in the first five months of 2025 year on year, driven by stable housing and fuel costs and a decline in key food prices, official data showed.

The Ministry of Economy attributed the subdued consumer price growth to declining costs in food and non-alcoholic beverages, which, along with housing and utilities, account for more than half the weighting in Oman’s inflation index.

This comes as inflation is broadly easing across the Middle East and North Africa, though country-level trends remain mixed, with Jordan recording 1.98 percent, ��Ƶ 2.2 percent and Dubai 2.3 percent in April. Egypt, however, posted a rise of 16.8 percent.

In its release, Oman’s Ministry of Economy, citing its official spokesperson Salem bin Abdullah Al-Sheikh, stated that “the stability of food and non-alcoholic beverage prices this year reflects the slowdown in global price increases and the continuation of government support policies for basic goods and services.”

It added: “At the same time, the food production, marketing, and manufacturing system continues to be strengthened as part of the progress made in implementing the food security strategy and economic diversification targets of the Tenth Five-Year Plan (2021-2025).”

This comes as global food commodity prices edged up in June, driven by higher meat, vegetable oil, and dairy prices, according to the UN Food and Agriculture Organization.

The FAO Food Price Index averaged 128 points for the month, up 0.5 percent from May and 5.8 percent higher year on year. However, it remained 20.1 percent below its March 2022 peak.

The US Federal Reserve maintained steady interest rates but cautioned that tariffs could exacerbate inflation, while the IMF revised its global inflation forecast upward to 4.3 percent this year.

In Oman, the general index for import prices increased by 1.3 percent, while the producer price index rose by 4.1 percent by the end of the first quarter compared to the same period in 2024.

Food and non-alcoholic beverage prices fell by 0.17 percent from January to May compared to the same period in 2024. Notable declines included vegetables at 4.63 percent, fish and seafood at 3.69 percent, and meat at 0.13 percent. Prices of non-alcoholic beverages dropped by 0.11 percent, and bread and cereals by 0.01 percent.

Conversely, prices rose for sugar, jam, honey, and sweets by 3.13 percent; milk, cheese, and eggs by 2.88 percent. Fruit prices rose by 1.05 percent, followed by prices of oils and fats at 1.28 percent, while other food products saw a 3.40 percent increase.

The miscellaneous goods and services category saw the highest inflation increase at 6.04 percent, followed by health care at 2.71 percent, and transportation at 2.68 percent. Prices remained stable for tobacco and communications, with minor increases in other CPI components.

Geographically, inflation saw a slight decline of 0.04 percent in South Al Batinah Governorate by the end of the first quarter of 2025.

The highest inflation rates were recorded in Al Dakhiliyah at 1.58 percent, Musandam at 1.51 percent, and South Al Sharqiyah at 1.24 percent. The lowest increases were in North Al Sharqiyah at 0.21 percent and North Al Batinah at 0.42 percent, while other governorates saw inflation below 1 percent.

The agriculture and fisheries sectors grew by 2.8 percent in 2024, contributing 987 million Omani rials ($2.56 billion) to the gross domestic product at constant prices. Growth accelerated to 7.6 percent in the first quarter, adding 273.6 million rials to GDP, according to the spokesperson.

Oman has established over 80 markets, slaughterhouses, and stalls since 2021 under the Governorate Development Program. Ongoing projects include a slaughterhouse in Shaleem and Halaniyat Islands, Al Mawared Market in Sinaw, an agricultural products center in Najd, and a fisheries and food industries complex in Duqm.

Topics: Oman oman inflation Inflation

Oil Updates — prices fall as OPEC+ hikes August output more than expected

Updated 07 July 2025

Reuters

July 07, 2025 11:00

Oil Updates — prices fall as OPEC+ hikes August output more than expected

OPEC+ to raise output by 548,000 bpd in August vs 411,000 bpd in July
Goldman expects a final 550,000 bpd OPEC+ output hike for September
Higher US tariffs to take effect on Aug. 1

Updated 07 July 2025

Reuters

July 07, 2025 11:00

SINGAPORE: Oil prices slipped on Monday after OPEC+ surprised markets by hiking output more than expected in August, while uncertainty over US tariffs and their potential impact on global economic growth weighed on demand expectations.

Brent crude futures fell 24 cents, or 0.35 percent, to $68.06 a barrel by 8:42 a.m. Saudi time, while US West Texas Intermediate crude was at $66.31, down 69 cents, or 1.03 percent.

The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August.

“The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue,” Tim Evans of Evans Energy said in a note.

The August increase is a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April.

The decision will bring nearly 80 percent of the 2.2 million bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts led by Helima Croft said in a note.

However, the actual output increase has been smaller than planned so far and most of the supply has been from ��Ƶ, they added.

��Ƶ on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia.

Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on Aug. 3.

Oil also came under pressure as US officials flagged a delay on when tariffs would begin but failed to provide details on changes to the rates that will be imposed.

The US is close to finalizing several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates scheduled to take effect on Aug. 1.

Trump in April announced a 10 percent base tariff rate on most countries and higher “reciprocal” rates ranging up to 50 percent, with an original deadline of this Wednesday.

However, Trump also said levies could range in value from “maybe 60 percent or 70 percent tariffs to 10 percent and 20 percent,” further clouding the picture.

Investors are worried higher tariff rates could slow economic activity which would reduce demand for oil.

“Concerns over Trump’s tariffs continue to be the broad theme in the second half of 2025, with dollar weakness the only support for oil for now,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova.

Topics: Oil Updates oil prices

Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

Updated 07 July 2025

Reuters

July 07, 2025 05:41

Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

Trump’s administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant “retaliatory tariffs”
In a joint statement, the group warned the rise in tariffs threatened global trade

Updated 07 July 2025

Reuters

July 07, 2025 05:41

RIO DE JANEIRO: President Donald Trump said the US will impose an additional 10 percent tariff on any countries aligning themselves with the “Anti-American policies” of the BRICS group of developing nations, whose leaders kicked off a summit in Brazil on Sunday.

With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive “America First” approach of the US president, the BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars.

In a joint statement from the opening of the BRICS summit in Rio de Janeiro released on Sunday afternoon, the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump’s tariff policies.

Hours later, Trump warned he would punish countries seeking to join with the grouping.

“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump said in a post on Truth Social.

Trump did not clarify or expand on the “Anti-American policies” reference in his post.

Trump’s administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant “retaliatory tariffs.”

The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, and the UAE as members. ��Ƶ has held off formally joining, according to sources, while another 30 nations have expressed interest in participating in the BRICS, either as full members or partners.

Indonesia’s senior economic minister, Airlangga Hartarto, is in Brazil for the BRICS summit and is scheduled to go to the US on Monday to oversee tariff talks, an official told Reuters. India’s foreign ministry did not immediately respond to a request for comment.

In opening remarks to the summit earlier, Brazil’s President Luiz Inacio Lula da Silva drew a parallel with the Cold War's Non-Aligned Movement, a group of developing nations that resisted joining either side of a polarized global order.

“BRICS is the heir to the Non-Aligned Movement,” Lula told leaders. “With multilateralism under attack, our autonomy is in check once again.”

BRICS nations now represent more than half the world’s population and 40 percent of its economic output, Lula noted in remarks on Saturday to business leaders, warning of rising protectionism.

GROWING CLOUT, COMPLEXITY

Expansion of the bloc has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the UN Security Council and the International Monetary Fund.

“If international governance does not reflect the new multipolar reality of the 21st century, it is up to BRICS to help bring it up to date,” Lula said in his remarks, which highlighted the failure of US-led wars in the Middle East.

Stealing some thunder from this year’s summit, Chinese President Xi Jinping chose to send his premier in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court related to his war in Ukraine.

Still, several heads of state were gathered for discussions at Rio’s Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.

However, there are questions about the shared goals of an increasingly heterogeneous BRICS group, which has grown to include regional rivals along with major emerging economies.

In the joint statement, the leaders called attacks against Iran's “civilian infrastructure and peaceful nuclear facilities” a “violation of international law.”

The group expressed “grave concern” for the Palestinian people over Israeli attacks on Gaza, and condemned what the joint statement called a “terrorist attack” in India-administered Kashmir.

The group voiced its support for Ethiopia and Iran to join the World Trade Organization, while calling to urgently restore its ability to resolve trade disputes.

The leaders’ joint statement backed plans to pilot a BRICS Multilateral Guarantees initiative within the group’s New Development Bank to lower financing costs and boost investment in member states, as first reported by Reuters last week.

In a separate statement following a discussion of artificial intelligence, the leaders called for protections against unauthorized use of AI to avoid excessive data collection and allow mechanisms for fair payment.

Brazil, which also hosts the UN climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on US climate initiatives.

China and the UAE signaled in meetings with Brazilian Finance Minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility, according to two sources with knowledge of the discussions about funding conservation of endangered forests around the world.

Topics: Trump Returns BRICS

��Ƶ

��Ƶ’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

��Ƶ’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

��Ƶ’s real estate transactions surge 38% in H1, reaching $34bn: Knight Frank

��Ƶ’s point-of-sale transactions drop to $3bn amid declines in key sectors

��Ƶ’s construction output to hit $191bn in 2029: Knight Frank

��Ƶ’s construction output to hit $191bn in 2029: Knight Frank

Saudi residential transactions up 35% over 5 years: Knight Frank report

Madinah leads regional growth with 24% construction employment in Q1

��Ƶ’s National Development Fund secures $1.3bn in credit facilities to boost development projects

��Ƶ’s National Development Fund secures $1.3bn in credit facilities to boost development projects

��Ƶ issues over 80k new commercial licenses in Q2 as business activity accelerates

��Ƶ rolls out skill-based work permits to attract global talent

Oman inflation holds at 0.81% as food, housing costs remain stable

Oman inflation holds at 0.81% as food, housing costs remain stable

Saudi inflation holds steady at 2.2% in May

World food prices tick higher in June, led by meat and vegetable oils

Oil Updates — prices fall as OPEC+ hikes August output more than expected

Oil Updates — prices fall as OPEC+ hikes August output more than expected

Oil Updates — crude falls as Iran affirms commitment to nuclear treaty

Oil Updates — prices soften on US tariff uncertainty and OPEC+ output expectations

Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

BRICS nations slam US tariffs, but avoid naming Trump

Japan PM says won’t ‘easily compromise’ to Trump on tariffs

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��Ƶ’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

��Ƶ’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

��Ƶ’s construction output to hit $191bn in 2029: Knight Frank

��Ƶ’s National Development Fund secures $1.3bn in credit facilities to boost development projects